Russia’s Central Bank announced it will hold an extraordinary meeting on Tuesday after the rouble reached its lowest value in almost 17 months on Monday morning.
As Moscow increases military spending and Western sanctions weigh on its energy exports, the currency dropped below the psychologically important level of 100 to the US dollar.
However, it did rise back to above the mark after the bank’s announcement it would review its key interest rate, raising the likelihood of an increase in borrowing costs that would support the flagging rouble.
The meeting was set after President Vladimir Putin’s economic advisor, Maksim Oreshkin, blamed the weak rouble on “loose monetary policy” in an op-ed Monday for state news agency Tass.
He said a strong rouble was in the interests of the Russian economy and that a weak currency “complicates economic restructuring and negatively affects people’s real incomes”.
To help lessen that prospect, the Central Bank said last week it would stop buying foreign currency on the domestic market until the end of the year to try to prop up the rouble and reduce volatility.
This is the best summary I could come up with:
Russia’s Central Bank announced it will hold an extraordinary meeting on Tuesday after the rouble reached its lowest value in almost 17 months on Monday morning.
As Moscow increases military spending and Western sanctions weigh on its energy exports, the currency dropped below the psychologically important level of 100 to the US dollar.
However, it did rise back to above the mark after the bank’s announcement it would review its key interest rate, raising the likelihood of an increase in borrowing costs that would support the flagging rouble.
The meeting was set after President Vladimir Putin’s economic advisor, Maksim Oreshkin, blamed the weak rouble on “loose monetary policy” in an op-ed Monday for state news agency Tass.
He said a strong rouble was in the interests of the Russian economy and that a weak currency “complicates economic restructuring and negatively affects people’s real incomes”.
To help lessen that prospect, the Central Bank said last week it would stop buying foreign currency on the domestic market until the end of the year to try to prop up the rouble and reduce volatility.
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